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[Release] Barito Pacific Posted 3.98% Rise in Revenues amid Challenging Year
Jakarta – PT Barito Pacific Tbk (“the Company”) posted US$2.295 billion of net revenues in 2012, or a 3.98% growth compared to same period last year of US$2.207 billion.
The growth was resulted by an increased of revenue contribution from our petrochemical sector which was from US$2.197 billion in 2011 to US$2.285 billion in 2012. This increase was mainly driven by higher sales volume of products and services.
“Our subsidiary in petrochemical business has maintained its ability to meet the growing demand of the petrochemical domestic market,” said Senior Vice President of PT Barito Pacific Tbk Agustino Sudjono.
In 2012, PT Chandra Asri Petrochemical Tbk (“CAP”), the Company’s subsidiary in petrochemical business, has started the construction of the country’s first butadiene plant which will be commissioning on Q3 2013.
Indonesia’s petrochemical industry continued to be hampered by the higher price of naphtha as the main feedstock for the petrochemical business. The global economic recovery throughout 2012 was still weak. The selling price for petrochemical products remained on a downward trend in 2012 as the petrochemical industry suffered its margins squeezed. The Company’s consolidated cost of revenues rose by 8.26% to US$2.282 billion in 2012 from US$2.108 billion in 2011.
“The Company remains steadfastly pledged to the petrochemical business,” Agustino said. As CAP achieves greater vertical integration through the industry’s up-stream and down-stream value chain, the Company’s petrochemicals unit will have increased its flexibility to withstand adverse price movements in the future.
The Company also pursued the expansion of our palm oil business and the initial development of rubber estate, making use of the Company existing forestry concession. In 2012, the Company has also started the construction of two palm-oil mills with total capacities of 30- tons fresh fruit bunches (FFB) per hour and 60-tons FFB per hour respectively – enough to increase the added value of the Company’s palm oil business to support further growth and expansion in future. (***)